UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 29, 2009
MASTEC, INC.
(Exact Name of Registrant as Specified in Its Charter)
Florida
(State or Other Jurisdiction of Incorporation)
(State or Other Jurisdiction of Incorporation)
| Florida | 0-08106 | 65-0829355 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
800 S. Douglas Road, 12th Floor, Coral Gables, Florida 33134
(Address of Principal Executive Offices) (Zip Code)
(Address of Principal Executive Offices) (Zip Code)
(305) 599-1800
(Registrant’s Telephone Number, Including Area Code)
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 2.02 | Results of Operations and Financial Condition |
On April 29, 2009, MasTec, Inc. (the “Company”) announced its financial results for the
quarter ended March 31, 2009. A copy of the Company’s earnings press release is furnished as
Exhibit 99.1 to this report on Form 8-K. The information contained in this report on Form 8-K,
including Exhibit 99.1, shall not be deemed “filed” with the Securities and Exchange Commission nor
incorporated by reference in any registration statement filed by the Company under the Securities
Act of 1933, as amended.
| ITEM 7.01 | Regulation FD Disclosure |
On April 29, 2009, the Company announced its financial results for the quarter ended March 31,
2009. In addition, the Company updated its 2009 annual guidance and issued guidance for the second
quarter of 2009 as set forth in the earnings release. A copy of the Company’s earnings press
release is furnished as Exhibit 99.1 to this report on Form 8-K. The information contained in this
report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” with the Securities and
Exchange Commission nor incorporated by reference in any registration statement filed by the
Company under the Securities Act of 1933, as amended.
| ITEM 9.01 | Financial Statements and Exhibits |
(d) Exhibits
99.1 — Press Release dated April 29, 2009.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| MASTEC, INC. |
||||
| Date: April 29, 2009 | By: | /s/ C. Robert Campbell | ||
| C. Robert Campbell | ||||
| Executive Vice President and Chief Financial Officer | ||||
EXHIBIT INDEX
| Exhibit No. | Description | |
99.1
|
Press Release dated April 29, 2009. |
| |
 |
| Contact: J. Marc Lewis, Vice President-Investor Relations 305-406-1815 305-406-1886 fax marc.lewis@mastec.com |
800 S. Douglas Road, 12th Floor Coral Gables, Florida 33134 Tel: 305-599-1800 Fax: 305-406-1960 www.mastec.com |
For Immediate Release
MasTec’s Net Income Rises 53% on 31% Increase in Revenue
-Gross Profit improved 46%-margin up 160 basis points
- -Net Income improved 53%-margin up 50 basis points
- -EBITDA improved 83%-margin up 240 basis points
- -Cash Provided by Operating Activities increased 7-fold to $49 million
- -Net Income improved 53%-margin up 50 basis points
- -EBITDA improved 83%-margin up 240 basis points
- -Cash Provided by Operating Activities increased 7-fold to $49 million
Coral Gables, FL (April 29, 2009) — MasTec, Inc. (NYSE: MTZ) today announced that revenue for the
quarter ended March 31, 2009 was $342 million and net income was $11.9 million or $0.16 per diluted
share compared with revenue of $262 million and net income of $7.8 million, or $0.12 per diluted
share for the prior year quarter. This represents an earnings increase of 53% on a 31% increase in
revenue over the prior year.
The Company continued to focus on margin improvement and cost containment. First quarter gross
margin improved to 15.0% from 13.4% from the previous year’s quarter and net income margin improved
to 3.5% from 3.0% in 2008. The margin for earnings before interest, taxes, depreciation and
amortization, or EBITDA margin, increased 240 basis points to 8.3% for the quarter just ended, up
from 5.9% in the first quarter of 2008.
As a result of the improved financial performance, MasTec’s balance sheet and cash flow from
operations remained strong. At the end of the first quarter, the Company had $131 million in cash,
cash equivalents, securities available for sale and availability on our bank line of credit. Net
cash provided by operating activities increased to $49 million compared with $7 million in the
prior year quarter.
Jose R. Mas, MasTec’s President and Chief Executive Officer, commented, “In spite of our country’s
economic challenges, we had an excellent first quarter. Our diversification efforts, along with
our margin improvement initiatives over the past 18 months, are having a positive impact on both
our earnings and our long term outlook. Today, we are in the unique position to take advantage of
the opportunities within the growing infrastructure sectors we serve, including renewable energy,
transmission line construction, wireless expansion and broadband connectivity.”
MasTec’s 2009 earnings guidance remains unchanged, with diluted earnings per share estimated to be
between $1.05 and $1.15 per share. Earnings per diluted share for the year is negatively impacted
by large increases in the non-cash amortization expense for acquisition-related intangible assets
and by a large increase in the mostly non-cash book tax rate. The Company now expects revenue of
approximately $1.85 billion for the year.
Revenue for the second quarter of 2009 is expected to be approximately $375 million, with earnings
per diluted share of $0.22 to $0.24.
Our guidance assumes a continued difficult economy and does not include any additional impact of
our legacy litigation or any mark-to-market valuation adjustments on auction rate securities,
either positive or negative.
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Management will hold a conference call to discuss results of operations for the quarter ended March
31, 2009 on Thursday, April 30, 2009 at 9:00 a.m. Eastern time. The call-in number for the
conference call is (913) 312-1412 and the replay number is (719) 457-0820, with a pass code of
5946684. The replay will run for 30 days. Additionally, the call will be broadcast live over the
Internet and can be accessed and replayed through the investor relations section of the Company’s
website at www.mastec.com.
Summary financials for the quarters are as follows:
Condensed Unaudited Consolidated Statement of Operations
(In thousands, except per share amounts)
(In thousands, except per share amounts)
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2009 | 2008 | |||||||
Revenue |
$ | 342,119 | $ | 261,992 | ||||
Costs of revenue, excluding depreciation and amortization |
290,926 | 226,844 | ||||||
Depreciation and amortization |
10,643 | 5,028 | ||||||
General and administrative expenses, including non-cash
stock compensation expense of $822 in 2009 and $844 in
2008 |
23,255 | 19,806 | ||||||
Interest expense, net of interest income |
5,762 | 2,496 | ||||||
Other income, net |
497 | 151 | ||||||
Income from continuing operations before income taxes |
12,030 | 7,969 | ||||||
Income taxes |
(101 | ) | (33 | ) | ||||
Income from continuing operations |
11,929 | 7,936 | ||||||
Loss from discontinued operations, net of tax |
— | (155 | ) | |||||
Net income |
$ | 11,929 | $ | 7,781 | ||||
Basic net income per share: |
||||||||
Continuing operations |
$ | 0.16 | $ | 0.12 | ||||
Discontinued operations |
— | — | ||||||
Total basic net income per share |
$ | 0.16 | $ | 0.12 | ||||
Basic weighted average common shares outstanding |
75,546 | 67,187 | ||||||
Diluted net income per share: |
||||||||
Continuing operations |
$ | 0.16 | $ | 0.12 | ||||
Discontinued operations |
— | — | ||||||
Total diluted net income per share |
$ | 0.16 | $ | 0.12 | ||||
Diluted weighted average common shares outstanding |
76,565 | 67,585 | ||||||
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Condensed Unaudited Consolidated Balance Sheets
(In thousands)
(In thousands)
| March 31, | December 31, | |||||||
| 2009 | 2008 | |||||||
Assets |
||||||||
Total current assets |
$ | 378,107 | $ | 439,365 | ||||
Property and equipment, net |
155,185 | 158,013 | ||||||
Goodwill and other intangibles, net |
418,107 | 420,604 | ||||||
Deferred taxes, net |
16,793 | 25,165 | ||||||
Securities available for sale |
21,009 | 20,580 | ||||||
Other assets |
27,451 | 27,170 | ||||||
Total assets |
$ | 1,016,652 | $ | 1,090,897 | ||||
Liabilities and Shareholders’ Equity |
||||||||
Current liabilities |
$ | 273,017 | $ | 334,048 | ||||
Other liabilities |
25,199 | 26,305 | ||||||
Long-term debt |
261,202 | 287,454 | ||||||
Total shareholders’ equity |
457,234 | 443,090 | ||||||
Total liabilities and shareholders’ equity |
$ | 1,016,652 | $ | 1,090,897 | ||||
Condensed Unaudited Consolidated Statements of Cash Flows
(In thousands)
(In thousands)
| For the Three Months | ||||||||
| Ended March 31, | ||||||||
| 2009 | 2008 | |||||||
Cash flows from operating activities: |
||||||||
Net cash provided by operating activities |
$ | 49,300 | $ | 7,334 | ||||
Net cash (used in) provided by investing activities |
(13,101 | ) | 835 | |||||
Net cash (used in) financing activities |
(25,946 | ) | (934 | ) | ||||
Net increase in cash and cash equivalents |
10,253 | 7,235 | ||||||
Net effect of currency translation on cash |
107 | — | ||||||
Cash and cash equivalents — beginning of period |
47,263 | 74,288 | ||||||
Cash and cash equivalents — end of period |
$ | 57,623 | $ | 81,523 | ||||
Reconciliation of Non-GAAP Disclosures-Unaudited
(In millions, except for percentages and per share data)
(In millions, except for percentages and per share data)
| Three Months Ended | Three Months Ended | |||||||||||||||
| March 31, 2009 | March 31, 2008 | |||||||||||||||
| EBITDA | EBITDA | |||||||||||||||
| EBITDA Reconciliation | Total | Margin | Total | Margin | ||||||||||||
GAAP Net income |
$ | 11.9 | 3.5 | % | $ | 7.8 | 3.0 | % | ||||||||
Loss from discontinued operations |
— | 0.0 | % | 0.2 | 0.0 | % | ||||||||||
Interest, net |
5.8 | 1.7 | % | 2.5 | 1.0 | % | ||||||||||
Taxes |
0.1 | 0.0 | % | 0.0 | 0.0 | % | ||||||||||
Depreciation and amortization |
10.6 | 3.1 | % | 5.0 | 1.9 | % | ||||||||||
Earnings before interest, taxes,
depreciation and amortization
(EBITDA) |
$ | 28.4 | 8.3 | % | $ | 15.5 | 5.9 | % | ||||||||
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| Years Ended | ||||||||
| EBITDA Reconciliation | 2009 | 2008 | ||||||
GAAP Net Income |
$ | 85-93 | $ | 66 | ||||
Loss from discontinued operations, net of taxes |
— | (1 | ) | |||||
Income from continuing operations |
85-93 | $ | 67 | |||||
Interest, net |
26-28 | 14 | ||||||
Income tax provision |
23-29 | 1 | ||||||
Amortization |
9-10 | 4 | ||||||
Depreciation |
37-40 | 24 | ||||||
Earnings from continuing operations before interest,
taxes, amortization and depreciation (EBITDA) |
$ | 180-200 | $ | 110 | ||||
MasTec is a leading specialty contractor operating mainly throughout the United States across a
range of industries. The Company’s core activities are the building, installation, maintenance and
upgrade of utility and communication infrastructure systems. The Company’s corporate website is
located at www.mastec.com.
This press release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. These statements are based on management’s current expectations and are
subject to a number of risks, uncertainties, and assumptions, which may, among other things, cause
our revenues, margins and earnings per share to differ from that projected. Such risks,
uncertainties and assumptions may include further or continued economic downturns, reduced capital
expenditures, reduced financing availability, customer consolidation and technological and
regulatory changes in the industries we serve; market conditions, technical and regulatory changes
that affect us or our customers’ industries; our ability to retain qualified personnel and key
management from acquired businesses and integrate acquisitions with MasTec within the expected
timeframes and achieve the revenue, cost savings and earnings levels from the acquisition at or
above the levels projected; the impact of the American Recovery and Reinvestment Act of 2009 and
any similar local or state regulations affecting renewable energy, electrical transmission,
broadband expansion and related projects and expenditures; our ability to attract and retain
qualified managers and skilled employees; increases in fuel, maintenance, materials, labor and
other costs; any liquidity issues related to our securities held for sale; material changes in
estimates for legal costs or case settlements; adverse determinations on any claim, lawsuit or
proceeding; the highly competitive nature of our industry; our dependence on a limited number of
customers; the ability of our customers to terminate or reduce the amount of work, or in some cases
prices paid for services under many of our contracts; the adequacy of our insurance, legal and
other reserves and allowances for doubtful accounts; any exposure related to our divested state
Department of Transportation projects and assets; restrictions imposed by our credit facility,
senior notes and any future loans or securities; any dilution or stock price volatility which
shareholders may experience in connection with shares we may issue as consideration for earn-out
obligations entered into, or as a result of conversions of convertible stock issued, in connection
with past or future acquisitions, the outcome of our plans for future operations, growth, and
services, including backlog and acquisitions; as well as other risks detailed in our filings with
the Securities and Exchange Commission. Actual results may differ significantly from results
expressed or implied in these statements. We do not undertake any obligation to update
forward-looking statements.
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